diff --git a/macos/Sources/Features/Terminal/BaseTerminalController.swift b/macos/Sources/Features/Terminal/BaseTerminalController.swift
index bdbd9c989..6e4807c1a 100644
--- a/macos/Sources/Features/Terminal/BaseTerminalController.swift
+++ b/macos/Sources/Features/Terminal/BaseTerminalController.swift
@@ -238,20 +238,18 @@ class BaseTerminalController: NSWindowController,
         
     }
     
-    func pwdDidChange(to: URL?){
-        
+    func pwdDidChange(to: URL?) {
         guard let window else { return }
         
-        // Get the current working directory from the focused surface
-        if ghostty.config.macosTitlebarProxyIcon == .visible, let pwd = focusedSurface?.pwd {
-            // Set the window's representedURL to the current working directory
-            window.representedURL = URL(fileURLWithPath: pwd)
+        if ghostty.config.macosTitlebarProxyIcon == .visible {
+            // Use the 'to' URL directly
+            window.representedURL = to
         } else {
-            // If we don't have a pwd, set representedURL to nil
             window.representedURL = nil
         }
     }
 
+
     func cellSizeDidChange(to: NSSize) {
         guard ghostty.config.windowStepResize else { return }
         self.window?.contentResizeIncrements = to
diff --git a/macos/Sources/Features/Terminal/TerminalView.swift b/macos/Sources/Features/Terminal/TerminalView.swift
index 633ed5989..768f57d30 100644
--- a/macos/Sources/Features/Terminal/TerminalView.swift
+++ b/macos/Sources/Features/Terminal/TerminalView.swift
@@ -71,7 +71,8 @@ struct TerminalView<ViewModel: TerminalViewModel>: View {
         guard let proxyURLString = focusedSurface?.pwd else {
             return nil
         }
-        return URL(string: proxyURLString)
+        // Use fileURLWithPath initializer for file paths
+        return URL(fileURLWithPath: proxyURLString)
     }
     
     var body: some View {